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This document consists of 5 printed pages and 3 blank pages. DC (LEO) 19008/3 © UCLES 2010 [Turn over UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level READ THESE INSTRUCTIONS FIRST If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet. Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graph or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer one question. The businesses described in this question paper are entirely fictitious. You are advised to spend 40 minutes on Section B. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. *3300650590* BUSINESS STUDIES 9707/33 Paper 3 May/June 2010 CASE STUDY 3 hours Additional Materials: Answer Booklet/Paper
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2 9707/33/M/J/10 © UCLES 2010 Sam’s Fashions (SF) Time for action ‘Sales volumes are up yet our profit margins and net profits are down. We must take action to increase profits or the shareholders could vote us off the Board’. The warning of the Chief Executive of Sam’s Fashions, Manuel, was clear. At the last Annual General Meeting of this public limited company, many shareholders had been disappointed about the falling profits. They were worried about the proposal to reduce dividends and the impact this could have on the share price of the company. The decision to cut retail prices last year by 5% on average had helped sales volume in the short term – but with the result of reducing profit margins. Manuel, the son of SF’s founder, and the other directors knew that important strategic decisions needed to be taken. The business was experiencing difficult trading conditions as a result of a lengthy global recession and increased competition. In the past, the growth of SF’s business had been based on the strategy of the founder Sam Little. His vision had been to ‘manufacture and sell quality clothing at premium prices to high income professional women’. The high quality of the clothes was supported by the luxurious furniture and fittings in the
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This note was uploaded on 04/13/2011 for the course BUSINESS 201 taught by Professor Mr.p.taylor during the Spring '11 term at Bay College.

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